Legend Biotech's 15min chart shows KDJ Death Cross, bearish Marubozu pattern.

Legend Biotech's 15-minute chart has triggered a KDJ Death Cross, accompanied by a Bearish Marubozu pattern on August 20, 2022, at 14:15. This indicates a shift in momentum towards the downside, with a potential for further decreases in the stock price. Sellers currently dominate the market, and the bearish momentum is likely to persist.

Legend Biotech (NASDAQ: LEGN), a commercial-stage pharma company based in Somerset, New Jersey, reported its Q2 earnings on Monday, July 2, 2025. The company, in partnership with Johnson & Johnson's Janssen, saw record sales for its CAR-T cell therapy, Carvykti, which is approved to treat relapsed or refractory multiple myeloma (MM). Let's delve into the key figures and implications of these earnings.

Revenue and Costs

Carvykti generated $439 million in revenues during Q2, making it the highest selling CAR-T therapy on the market. This figure represents a 13% sequential growth and 114% annual growth in the US, as well as 59% growth ex-US. The company reported $35.3 million in license revenue and $219.7 million in collaboration revenues, up from $93.3 million in the prior year quarter. However, costs were also significant, with cost of revenues at $94.9 million, R&D expenses at $98.3 million, administrative expenses at $32.6 million, and selling and distribution expenses at $48.1 million. The adjusted net loss was $10.1 million, compared to $2.5 million in the prior year quarter, and the GAAP net loss was $125.4 million, or $0.34 per share.

Pipeline and Future Prospects

Legend's pipeline includes several promising assets, with the most advanced being its DLL3-targeting candidate for small cell lung cancer (SCLC) and large-cell neuroendocrine carcinoma (LCNEC). The company is also developing a Claudin-18 candidate for gastric cancer and exploring cell therapies for autoimmune conditions. Notably, Legend is developing in-vivo drug delivery programs that could revolutionize the field by eliminating the need for preconditioning. These early-stage programs, however, are still years away from commercialization.

Market and Valuation

Legend's share price has been volatile, reaching an all-time high of $76 in July 2023 and falling to $25 in May 2025. After a brief uptick to $45, the price has since declined, with the current market cap valuation at $6.82 billion. The company's cash position is over $1 billion, and it has not provided specific revenue or earnings guidance for 2025. However, CEO Ying Huang indicated on the earnings call that the company anticipates achieving operational breakeven for Carvykti by the end of 2025 and company-wide profitability in 2026, excluding unrealized foreign exchange gains or losses.

Conclusion

Legend Biotech's Q2 earnings highlight the company's impressive sales performance with Carvykti, but profitability remains elusive. The company's pipeline is promising, with several early-stage assets, but these are still years away from commercialization. The market's response to the earnings, marked by a KDJ Death Cross and Bearish Marubozu pattern, suggests a shift in momentum towards the downside. Investors should closely monitor the company's progress in the coming quarters, particularly as it works towards operational breakeven and profitability.

References

[1] https://seekingalpha.com/article/4813740-legend-biotech-q2-record-sales-undermined-by-losses-immature-pipeline-rating-downgrade